AT&T Yields 5.3% Near 52-Week Low as SpaceX Threat Weighs on Stock

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Summary · why it matters

AT&T shares are trading near a 52-week low at about $21, pushing the dividend yield to 5.3%, as concerns mount that SpaceX's Starlink satellite network could disrupt its broadband and wireless business. Oppenheimer downgraded the stock in June, citing Starlink's direct-to-phone plans as a structural threat that could limit AT&T's fiber build to 50 million homes by 2030, below management's 60 million target. Despite the worry, AT&T's first-quarter 2026 revenue rose 3% year over year, adjusted earnings per share climbed nearly 12%, and it posted a record quarter for advanced connectivity internet net additions, ending with over 37 million fiber locations. The dividend appears well protected, with expected free cash flow above $18 billion this year against an $8 billion dividend cost, and the stock trades at about 7 times trailing earnings, a deep discount to the broader market. The SpaceX risk is seen as a slow-moving, decade-long challenge, making the high yield and low valuation look like an opportunity for income investors.